If Firms in a Competitive Market Are Not Identical,then an Increase

question 10

Multiple Choice

If firms in a competitive market are not identical,then an increase in cost will

• A) shift marginal cost to the right.
• B) push the most inefficient firms out of the market.
• C) push the most efficient firms out of the market.
• D) Need more information.

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Definitions:

Debit

A bookkeeping record that leads to an uptick in a firm's assets or a reduction in its liabilities on the balance sheet.

Account Receivable

Money owed to a company by its customers for goods or services delivered but not yet paid for.

Total Assets

The sum of all current and non-current assets owned by a business, representing its value and operational capacity.

Increase

Increase signifies a rise in value or quantity of a variable or account in the context of finance and accounting.